The most common and most likely answer to this crossword clue is the 7 letter word VISCOSE
I've seen this crossword clue in The Times
V
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More clues leading to the result VISCOSE
Buddy explains!

The straight part
We know that "Manufactured material/U" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case manufactured material/u = viscose.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does VISCOSE mean?
VISCOSE noun- A viscous orange-brown liquid obtained by chemical treatment of cellulose and used as the basis of manufacturing rayon and cellulose film.
- A fabric made from this material.